Kaitlyn's company needs to obtain funds in order to keep the business going;however,she does not want stockholders influencing the direction of her company.What type of financing should Kaitlyn acquire?

Question

Quizplus · Accepted Answer

Debt capital is the best choice for Kaitlyn's company as it involves borrowing money from a lender with the agreement to pay it back with interest over a predetermined period of time. This way, Kaitlyn can obtain the funds she needs without diluting ownership or control of the company. The lender does not have any ownership or influence over the company's decision-making processes, unlike equity financing where stockholders become part owners of the company and have a say in its direction.

Kaitlyn's Company Needs to Obtain Funds in Order to Keep